Payoff Debt Consolidation Loans: 2017 Review

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NerdWallet rating: 4.0 / 5.0Good for: Good credit, debt consolidation

Payoff provides fixed-rate loans to borrowers solely for the purpose of paying off credit card debt. Borrowers have an average debt of $15,000 they want to consolidate.

You need help staying disciplined. Payoff’s “member advocates” provide ongoing support and financial guidance as you pay back your loan, keeping you on track and helping you improve your financial health.

You don’t live in one of these states, where Payoff loans aren’t offered: Alabama, Arizona, Connecticut, Delaware, Iowa, Kansas, Louisiana, Massachusetts, Minnesota, New Hampshire, South Dakota, Vermont, West Virginia and Wyoming.

Detailed Payoff personal loan review

To review Payoff, NerdWallet collected more than 30 data points from the lender, interviewed company executives, completed the online loan application process with sample data, and compared the lender with others that seek the same type of customer or offer a similar product. Loan terms and fees may vary by state.

While Payoff doesn’t force you to pay off your credit cards, it makes personalized recommendations to keep you on track, using quizzes that assess your financial personality, your level of financial stress and how your wealth compares to others’. Based on your results, Payoff will serve up tools and resources to help you stick to your goal.

“Having this personal insight into your habits is huge,” says Scott Saunders, chief executive officer of the Costa Mesa, California, company. “It empowers you to make better financial decisions in the future.”

Borrowers can get customer support via chat during business hours if they want quick answers to questions. They can also call a Payoff member advocate for support and guidance as they pay back the loan, or to talk about their financial goals and how to achieve them.

Payoff partners with First Electronic Bank, an FDIC-insured bank, to issue loans.

Steps toward financial health

Payoff allows some payment flexibility. If you miss a payment, you won’t be charged a late fee; rather, you can work with your representative to create a plan to catch up. Payoff may offer you the options of payment deferral, skipping a payment or changing your payment date.

Payoff borrowers also have free access to their FICO credit scores monthly, a feature that few online lenders offer. This makes it easier to track your progress toward better financial health.

How to apply for a Payoff loan

You can check your estimated rate for a Payoff loan on the company’s site by entering your name, date of birth, salary and other details, and answering questions such as whether you rent or own your home. The company conducts a soft credit check, which won’t affect your credit score, with credit bureau TransUnion. You’ll see your credit card balances, and a representative may contact you to suggest a loan amount based on your financial picture (which may be lower than what you asked for).

If you want to compare an offer from Payoff with those from other lenders, you can check rates with multiple lenders on NerdWallet using the button below. NerdWallet will check its lender marketplace and display the loans for which you qualify, so you can compare rates in one place. Checking your rate won’t affect your credit score.

Personal Loans Ratings Methodology

NerdWallet’s ratings for personal loans awards points to lenders that offer consumer-friendly features, including: soft credit checks, no origination fees, payment options, short time to funding, interest rate caps of 36%, and absence of prepayment penalties. Features are considered for their positive impact on consumers’ credit history and financial health. To ensure accuracy and consistency, our ratings are reviewed by multiple people on the NerdWallet Personal Loans team.

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